Today’s Price Action:
*Bitcoin and Ethereum have seen modest declines in the past 24 hours, with prices fluctuating within relatively narrow ranges. Despite these recent dips, both cryptos maintain strong support levels and long-term bullish trends. However, short-term indicators reflect mixed or slightly bearish sentiments.
Friday
*As August ends, Bitcoin lags behind traditional assets, weighed down by declining liquidity and concerns that governments, including the US, China, the UK, and Ukraine, might sell their Bitcoin reserves. Additionally, creditors of the defunct Mt. Gox exchange could add to the potential $33 billion Bitcoin supply overhang, according to Kaiko’s research.
*The Federal Reserve’s preferred measure of underlying US inflation rose modestly in July, while household spending increased, supporting plans to begin cutting interest rates next month.
*Stocks climbed following the inflation data, boosting expectations of multiple rate cuts by the Federal Reserve this year.
*In early New York trading, equities rose, with the S&P 500 set to reduce this week’s losses and poised for a fourth consecutive monthly gain. Treasuries remained steady, with the market on track for its longest monthly winning streak since 2021. Swap traders continued to predict around 100 basis points of Fed rate cuts by year-end, suggesting the possibility of a significant reduction, though not necessarily in September.
*Kamala Harris has maintained the momentum in the presidential race, leading or tying with Republican Donald Trump in each of the seven key battleground states.
Thursday
*Stocks climbed while bonds declined as data revealed that the U.S. economy remains resilient despite elevated Federal Reserve rates. Nvidia dropped 3% after its outlook failed to impress investors.
*Equities edged higher in early New York trading, suggesting a rebound for the S&P 500, even as one of its largest constituents faced a sell-off. Treasury yields rose across the curve, with swap traders slightly reducing their bets on interest rate cuts. Meanwhile, European stocks briefly approached their highest-ever closing level amid strong earnings.
*Nvidia disappointed investors with its latest results on Wednesday, providing a lackluster forecast and revealing production issues with its highly anticipated Blackwell chips.
*Telegram’s CEO has been charged in France for crimes committed on the app. Pavel Durov’s lawyer argues he isn’t responsible for crimes on the platform. Durov is out on €5 million bail but is barred from leaving France. Toncoin plummeted over 20% following Durov’s arrest, with VC fund Pantera noting that Toncoin is its largest investment.
Wednesday
*Global equities inched higher ahead of a key earnings report from Nvidia, the $3 trillion company leading the global AI surge.
*U.S. mortgage rates dropped again last week to their lowest level since April 2023, leading to a modest increase in home purchase applications.
*Bitcoin experienced its largest drop since the market turmoil of early August, part of a broader decline in crypto prices, including a steep fall in Ether. The crypto market is reversing gains previously fueled by bets on Fed rate cuts
*Nvidia released its second-quarter earnings, surpassing expectations for both earnings and revenue. The company reported earnings per share of $0.68 on $30 billion in revenue, beating analysts’ forecasts of $0.64 EPS and $28.8 billion in revenue. This marks a significant jump from the same quarter last year, when Nvidia reported EPS of $0.27 on $13.5 billion in revenue. Additionally, Nvidia’s revenue guidance for the third quarter was set at $32.5 billion, slightly above the $31.9 billion expected by analysts. Despite the strong results, Nvidia’s shares dropped 6% immediately after the announcement.
Tuesday
*Global equities inched higher ahead of a key earnings report from Nvidia, the $3 trillion company leading the global AI surge.
*Nvidia, viewed as a gauge for AI spending across much of the tech industry, is expected to forecast over 70% revenue growth for the current quarter in its Wednesday post-market report. Any disappointment could significantly impact markets, given Nvidia’s influence on U.S. indexes.
*U.S. mortgage rates dropped again last week to their lowest level since April 2023, leading to a modest increase in home purchase applications.
*Bitcoin experienced its largest drop since the market turmoil of early August, part of a broader decline in crypto prices, including a steep fall in Ether. The crypto market is reversing gains previously fueled by bets on Fed rate cuts.
Monday
*With Nvidia Corp.’s earnings just a day away and a slew of significant U.S. economic data due later in the week, markets saw little movement on Tuesday.
*U.S. equity futures, Treasuries, and the dollar remained relatively unchanged. The stakes are high ahead of Nvidia’s report, particularly after an earnings season that brought disappointing results for other “Magnificent Seven” megacaps. The upcoming data on U.S. economic growth, inflation, personal spending, and jobs is contributing to a cautious market sentiment.
*Chinese companies might consider selling their $1 trillion in dollar-denominated assets as the U.S. lowers interest rates, potentially strengthening the yuan by up to 10%, according to Eurizon SLJ Capital.
*Meanwhile, Ether is lagging behind Bitcoin as investor concerns over supply increases and memecoins continue to weigh on sentiment. ETFs for Ether have experienced eight consecutive days of outflows, reflecting worries about the token’s growing supply.
